If a country's currency appreciates,all other things being equal,its exports and imports will increase.

Question

Quizplus · Accepted Answer

If a country's currency appreciates, its exports become more expensive and less competitive in international markets, leading to a decrease in exports. Similarly, imports become cheaper and more attractive, leading to an increase in imports. Therefore, an appreciation of a country's currency would lead to a decrease in exports and an increase in imports, not the other way around.

If a Country's Currency Appreciates,all Other Things Being Equal,its Exports